Yet Another Worry for County Charities : Bankruptcy Raises Concern Over People’s Ability to Give

Orange County’s charities have been battered in recent years by a recession that cut giving, disasters that increased requests for help, and a decrease in companies that once were major donors. Now comes the county’s bankruptcy, sparking more concern over people’s ability and willingness to give.

Last year a number of churches and nonprofit agencies reported that donations appeared to have stabilized after dropping for several years. That was a welcome development, though there were still reasons for concern.

The United Way of Orange County, for instance, reported that although it fell short of its $20-million target for its annual fund-raising campaign, it did manage a slight improvement over the 1993 tally of $19.3 million.

It is clear that the need for help has not diminished. Thousands are homeless and many more need services such as medical assistance and food that charities provide.

Now there is worry that laid-off county workers who were prominent contributors to the United Way will be unable to continue giving. Equally important, the blow to public confidence caused by the bankruptcy has raised concern that some potential givers might keep their wallets shut even though they still have jobs. Churches, temples, charities and nonprofit agencies long have noticed a strong correlation between community confidence and charitable giving.

Any decrease in giving could compound problems for several charities receiving large grants from the United Way. The Boy Scouts, Girl Scouts and Salvation Army have been told they may get 10% less than they expected from the United Way. The cuts are not related to the bankruptcy, but to a decline in unrestricted contributions as donors took advantage of changes instituted several years ago that let them direct their money to specific organizations or causes.

But the cuts, if implemented, would hurt. For instance, the Boy Scouts do good work in providing food for more than 100,000 people for several months, thanks largely to United Way money. Last year the charity supplied the Boy Scouts with $400,000. A 10% cut would mean $40,000 less.

To their credit, a number of charities have promised to step up their efforts to raise more funds directly. An official of the Girl Scouts Council of Orange County said a possible $25,000 cut in United Way funds could hurt the organization’s efforts to help girls in the inner city. But she said the group will find some way to make up the reduced funding.

Despite its worries, United Way took the commendable step of setting up an emergency loan fund, aided by several businesses in the county, for health care and human services organizations that have seen their funding interrupted by the bankruptcy crisis. Nonprofit groups also have wisely set up meetings with the county’s chief executive officer and business leaders to make sure their needs are kept in mind.

What all charities need is more help from the public. Orange County residents who find themselves better off as the economy improves, who find themselves more confident that their incomes will not dip and may even increase, should think of those still needing help, and the charities that serve them. County residents have stepped forward to help before, providing the funds for good causes such as Orangewood, the home for abused and neglected children, and the Performing Arts Center. Now a crisis seems likely to demand that they help again.